US home prices rise 12.4 percent, most in 7 1/2 years

U.S. home prices rose 12.4 percent in July compared with a year ago, the most since February 2006. An increase in sales on a limited supply of available homes drove the gains, the Associated Press is reporting.

The Standard &Poor’s/Case-Shiller 20-city home price index improved from a 12.1 percent year-over-year gain in June. And all 20 cities posted gains in July from the previous month and compared with a year ago.

Still, the month-over-month price gains shrank in 15 cities in July compared with the previous month, indicating prices may be peaking. New York showed the slowest growth of the index’s 20 cities, with annual growth of only 3.5 percent

“Home prices gains are holding their 12% annual rate of gain established by the two Composite indices in April,” says David M. Blitzer, Chairman of the Index Committee at S&P Dow Jones Indices.

What does this mean for the Lower Hudson Valley, where home price averages trend well above national averages?

“Buyer demand in most Westchester communities has been strong and consistent. We are anticipating steady activity in the fall and since prices have edged up, it is encouraging more homeowners to explore the opportunity of putting their homes on the market,” says Wayne LaFranco, regional vice president for Coldwell Banker Residential Brokerage.

“Our agents were very busy over the summer, and I expect this to continue into the holiday season. Buyers continue to look for the ‘value’ in a home and sellers are seeing increased activity and offers quickly, when homes are priced appropriately to the market. ”
The Southwest continues to lead the housing recovery. Las Vegas home prices are up 27.5% year -over-year; in California San Francisco, Los Angeles and San Diego are up 24.8%, 20.8% and 20.4% respectively. However, all remain far below their peak levels.

Karen Croke is the editor of Living Here, an award-winning Sunday real estate section devoted to residents and their homes. In her spare time, Karen has painted every room in her 100 year old home and has plans to re-tile the bathroom. Someday. Follow her obsession with celebrity homes on twitter @LivingHereNY and the real estate blog, realestate.lohudblogs.com